Stocks have been under tremendous selling pressure throughout most of December. Before the bounce on Wednesday, December 26, the S&P was down 14.8% and was set up for the worst loss of any December on record.
In order to get a gauge on how oversold things were, I ran two scans after the market closed on Christmas Eve. I ran a scan to see how many stocks in the S&P 500 had daily stochastic readings below 20 and I ran a scan to see how many stocks had a 10-day RSI reading below 30. Those are the traditional levels considered to mark “oversold” territory for those two indicators.
The scan of the stochastic readings showed that 479 members of the S&P were in oversold territory after the decline on Christmas Eve. The RSI scan showed that 444 members were in oversold territory.
Just for my own amusement, I adjusted the stochastics scan to a level of 30 to see how many stocks in the S&P were in or close to oversold territory based on this indicator. There were 493 with stochastic readings below the 30 level as of December 24.
Because the number was so high, I adjusted the scan to find out which seven stocks were not in or close to oversold territory. These are the seven stocks in the S&P that had stochastic readings above 30 on Monday, December 24.
AVGO broke above its upper Bollinger Band on April 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 57 similar instances where the stock broke above the upper band. In of the 57 cases the stock fell afterwards. This puts the odds of success at .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AVGO as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
AVGO moved above its 50-day moving average on March 20, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 345 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.764) is normal, around the industry mean (6.473). P/E Ratio (49.376) is within average values for comparable stocks, (120.628). Projected Growth (PEG Ratio) (1.543) is also within normal values, averaging (2.560). Dividend Yield (0.015) settles around the average of (0.021) among similar stocks. P/S Ratio (14.925) is also within normal values, averaging (34.564).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of digital and analog semiconductor products
Industry Semiconductors